1. Predetermined Factory Overhead Rate

   Street Runner Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs and expenses for the coming period are as follows:

   Engine parts		$513,800
   Shop direct labor		375,000
   Shop and repair equipment depreciation		35,800
   Shop supervisor salaries		99,700
   Shop property taxes		18,100
   Shop supplies		13,900
   Advertising expense		10,300
   Administrative office salaries		44,200
   Administrative office depreciation expense		5,700
   	Total costs and expenses	$1,116,500

   The average shop direct labor rate is $15 per hour.

   Determine the predetermined shop overhead rate per direct labor hour. Round the answer to nearest whole cent. $ per direct labor hour

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   Factory overhead is applied based on direct labor hours.

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